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Serum Institute too seeks indemnity from liability

Serum Institute too seeks indemnity from liability

  • India is expected to grant indemnity to foreign vaccine makers including Pfizer and Moderna which would make it easier for their Covid vaccines to come to India.
  • Similarly, Serum Institute has also asked for indemnity from liability, stating that all vaccine manufacturers, whether Indian or foreign, should be protected against legal suits for any severe side effects.
  • In simple terms, indemnity means security against a loss or other financial stress.

  • In legal terms, it means a contractual obligation of one party to compensate another party due to the acts of the former.

  • The clause is commonly used in insurance contracts.

  • In the case of India, if the government gives an indemnity to foreign vaccine makers to roll out their vaccine in the country, the government, and not the vaccine maker, would be liable to compensate any citizen who claims to have side effects after taking the vaccine jab.

Exceptions to indemnification

  • An indemnification provision may exclude indemnification for claims or losses that result from the indemnified party’s:**
  1. Negligence or gross negligence
  2. Improper use of the products
  3. Bad faith failure to comply with its obligations in the agreement